American Capital Funds Group LLC

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PARTNER AGREEMENT-CO-BROKER (CONTRACTOR)
TERMS OF SERVICE

BROKER(CONTRACTOR) REQUIREMENTS-

Broker(Contractor) shall originate and submit to American Capital Funds Group LLC loan packages for underwriting under such programs, terms and requirements as may be specified by American Capital Funds Group LLC. American Capital Funds Group LLC acknowledges and agrees that Broker(Contractor) is under no obligation to furnish to American Capital Funds Group LLC a specified number of loan packages or to furnish any or all loan packages originated by Broker(Contractor).

Rights

A.) American Capital Funds Group LLC reserves the right, at any time, to amend or revise its documentation requirements, underwriting criteria, and any other requirements with respect to any mortgage loan program.

B.) Broker(Contractor) acknowledges and agrees that American Capital Funds Group LLC in its sole discretion may reject any loan package submitted by Broker(Contractor) for any reason at any time prior to issuing a written commitment to the borrower.

C.) The American Capital Funds Group LLC will provide Broker(Contractor) with a listing of available loan programs, hereinafter collectively referred to as the “Loan Plan”.

D.) American Capital Funds Group LLC, from time to time, will compile an authorized third-party vendor list. Broker(Contractor) agrees to exclusively use any of the vendors on the approved list as well as agrees to not use any entity listed on American Capital Funds Group LLC ‘s exclusion list for any loan that will be underwritten and or closed by American Capital Funds Group LLC.

E.) Within thirty (30) days of the registration applicable to each application, Broker(Contractor) will submit to American Capital Funds Group LLC a completed loan package. American Capital Funds Group LLC will review and underwrite the loan request in accordance with The Federal Housing Administration, or Federal National Mortgage Association guidelines, and or any internal guidelines known or unknown to Broker(Contractor). If a completed loan package is not submitted within this period, American Capital Funds Group LLC will remove the loan from the active pipeline and thus issue a written denial.

BROKER(CONTRACTOR) REPRESENTATIONS, WARRANTIES AND COVENANTS

A. Broker(Contractor) shall originate and submit to American Capital Funds Group LLC loan packages for underwriting under such programs, terms and requirements as may be specified by American Capital Funds Group LLC. American Capital Funds Group LLC acknowledges and agrees that Broker(Contractor) is under no obligation to furnish to American Capital Funds Group LLC a specified number of loan packages or to furnish any or all loan packages originated by Broker(Contractor).

B. American Capital Funds Group LLC reserves the right, at any time, to amend or revise its documentation requirements, underwriting criteria, and any other requirements

C. Broker(Contractor) agrees that it will submit only information and loan applications that are true, correct, currently valid and genuine.

D. Broker(Contractor) and American Capital Funds Group LLC, individually, further agree and certify that, with regard to Broker(Contractor)’s and American Capital Funds Group LLC’s activities in general and to each and every loan in particular, that it shall comply with all applicable State and Federal laws, rules and regulations, including, but not limited to, the following laws and the related regulations: the Truth in Lending Act; the Fair Credit Reporting Act; the Flood Disaster Protection Act; the Real Estate Settlement Procedures Act; the Equal Credit Opportunity Act; the Fair Housing Act; the Patriot Act; the Safe Act and the Home Mortgage Disclosure Act, all as are or may be amended from time to time. The amendments would be inclusive of any changes made in association with the implementation of the Dodd-Frank Wall Street Reform and Consumer Protection Act, as well as, the interpretation of said laws, rules and regulations as dictated by the CFPB, any GSE or other industry regulator.

E Broker(Contractor) represents that this Agreement does not conflict with the provisions of any other agreement to which Broker(Contractor) is a party and that this Agreement is a legal, valid and binding obligation, enforceable accordance with its terms.

F. Broker(Contractor) shall indemnity if y and hold American Capital Funds Group LLC harmless from any loss, damage, costs or expense, including all reasonable attorneys’ fees, (i) resulting from the breach by Broker(Contractor) of any of its covenants or agreements contained herein or (ii) if any representation or warranty made herein by Broker(Contractor) is false in any material respect.

G. Broker(Contractor) represents, with respect to any loan submitted to American Capital Funds Group LLC under this Agreement, that there does not exist any circumstance or condition with respect to the property securing the loan, the borrower or the borrower’s credit standing, which would cause the loan to become delinquent or adversely affect the value of the property.

H. Broker(Contractor) agrees that it shall comply with the provisions of Regulation Z concerning return of monies paid to either party by the applicant should the applicant validly exercise the right to rescind.
I. The Broker(Contractor) is and shall continue to be duly organized, validly existing and in good standing under the laws of its state of organization during the time of its activities with respect to the origination of mortgage loans. The Broker(Contractor) has and shall continue to maintain in full force and effect all required licenses, registration ns, and certifications in all appropriate jurisdictions to conduct all activities performed with respect to origination and processing of mortgages. Broker(Contractor) will notify American Capital Funds Group LLC immediately upon learning of an y revocation of an y such license.

J. Upon request by either party, Broker(Contractor) or American Capital Funds Group LLC shall furnish evidence in a form satisfactory to the requesting party of any action taken to comply with applicable laws including copies of an y notice or disclosure forms furnished to an individual applicant if such application was originated from Broker(Contractor).

COMMITMENT TO PURCHASE, PRICE AND TERMS

A. Broker(Contractor) may only originate loans in the geographical areas in which it is duly licensed to originate.

B. American Capital Funds Group LLC will issue a written mortgage commitment to Broker(Contractor) ‘s Applicant(s) upon loan approval. Said commitment must be returned to American Capital Funds Group LLC by the Applicant(s) within 5 business days. If said commitment is not returned within 5 business days, American Capital Funds Group LLC has the right to cancel the application and thus issue a denial to the Applicant(s).

C. Upon a denial of credit, American Capital Funds Group LLC will issue an adverse action notice to borrower(s) and copies of such notices will be provided to Broker(Contractor)(Contractor).

D. American Capital Funds Group LLC will deduct the fees shown on the daily rate sheet for the day the loan is locked from any fees or above par pricing due to the Broker(Contractor), if the Broker(Contractor) failed to properly disclose such fees on the binding original or, as applicable, on any revised and binding Good Faith Estimate issued to the applicant.

E. American Capital Funds Group LLC reserves the right to change the interest rates, margins, caps, etc., at any time on any programs or products that it offers except for any individual loan which has been rate locked and which such rate lock has not yet expired.

INDEMNIFICATION AND REPURCHASE, NON-SOLICITATION AND EARLY PAYOFF

A) Broker (Contractor) represents, warrants, and covenants that there is no fraud, misrepresentation or d dishonesty with respect to any loan package Broker (Contractor) submits to Lender and agrees to immediately repurchase from Lender any such loan package as determined by Lender to have such fraud, mis representation or dishonesty for a price as set forth in paragraph 3 below.

B) Any loan which is identified as noncompliant with the representations, warrants and covenants noted above, inclusive of the Ability to Repay /Qualified Mortgage
requirements, at any time during the life of the loan, due to an error or omission by the Broker (Contractor), AFR reserves the right to require the loan be repurchased in full based on the repurchase price calculation below.

C) The repurchase price shall be equal to the sum of (a) the full loan amount and (b) the greater of par or the interest rate credit Lender paid for such loan, and (c) al I service­ release or other premiums paid by Lender, and (d) all accrued, unpaid interest and late charges, and (e) all escrow advances made by Lender, and (f) all other miscellaneous expenses incurred by Lender with respect to the related loan.

D) Broker (Contractor failure to comply with the repurchase request within 30 days from the date of demand entitles Lender to withhold from or set off against any amounts due from Lender to Broker (Contractor) or any amounts Broker (Contractor) has deposited with the Lender.

E) Broker (Contractor) agrees that it will not solicit for refinance any loan placed with the Lender for a period of twelve (12) months following the Lender’s closing date for each loan.

F) In addition, for all loans, if the borrower full y pays off a loan within the first six (6) months following the first payment date due to the Lender, the Broker (Contractor) must reimburse Lender, within thirty (30) days of such payoff or whenever notified by Lender, an amount equal to any premium paid above par including any yield spread premium whether paid to Broker (Contractor) and or Borrower. An exception to this would be if Lender is the one who paid off the original loan through its own Retail Loan Origination division.

GENERAL PROVISIONS

A. Broker will be responsible for any origination costs including but not limited to any costs associated with any appraisal(s), credit report(s), marketing and or lead costs.
B. Lender will, from time to time, send proprietary information to Broker. Broker agrees that all marketing material, agreements, products, programs, rate sheets and ways of doing business are the property of Lender. Broker will not share any information that may be deemed proprietary with any other entity especially a direct competitor such as a lender, mortgage broker, credit union or bank.
C. Broker agrees that it has implemented appropriate security measures designed to protect against unauthorized access to or use of Lender’s and Broker’ s customer information that could result in substantial harm or inconvenience to any customer.
D. Broker agrees that in the event it experiences any incident of unauthorized access to customer or consumer information it will take immediate action to investigate such incident and, additionally, will notify the other party regarding such incident as soon as possible following the event.

PAYMENT FOR SERVICES

American Capital Funds Group LLC agrees to compensate Broker (Contractor) for its services on a commission basis only. The commission to be paid to Broker (Contractor) shall be an amount up to 50% of net fees after state, federal taxes, state licensing requirement fees for states American Capital Funds Group LLC is not currently registered and any co-Broker(Contractor) related to the loan originated earned by American Capital Funds Group LLC. American Capital Funds Group LLC, as a direct result of the efforts of Broker (Contractor). The commission shall be calculated monthly and payable on or about the 15th day of the month following the month in which the commission was calculated, and American Capital Funds Group have received Broker(Contractor) fees from closing.

No other fees and/or expenses will be paid to the Contractor, unless such fees and/or expenses have been approved in advance by the appropriate executive on behalf of the Recipient in writing. The Contractor shall be solely responsible for all taxes, Social Security contributions or payments, disability insurance, unemployment taxes, and other payroll type taxes applicable to such compensation. The Contractor has the right of control over the method of payment for services.